Dealing
with Tax Lines 
Use
You must carry out Customizing for eligible tax codes if you want to be able to determine which part of the expenditures incurred during Expenditure Certification can be reimbursed and which cannot.
This means that an organization must decide whether to include sales or withholding taxes in the certification run or exclude them from it, and in this way define the exact amount of expenditures actually eligible for certification.
The eligible amount of a document line, that is, the eligible expenditure, does not necessarily have to be the same as the total amount of the document line. Instead, the eligible amount depends on the tax handling method used. You can do this in the following ways:
● You can specify which sales tax codes are eligible.
● You can specify which withholding tax types and codes are not eligible for certification.
You define the tax handling method in Customizing and assign it to a particular phase of a certification procedure.
Procedure
...
1. Access the IMG activity Define Tax Handling and enter a tax handling method for the corresponding company code as follows:
○ For the tax handling method, enter the sales tax codes that are eligible. Note that all the ones that you do not enter here are non-eligible.
○ Enter the withholding tax types and codes that are non-eligible. Again, note that all the ones that you do not enter here are eligible.
2. Save your data.
3. Access the IMG activity Define Certification Procedure and specify the tax handling method for each phase.
4. Save your data.
Result
The eligible amount for the certification run includes the amounts corresponding to the sales tax of the codes that you defined as eligible in Customizing. It does not include the amounts corresponding to the withholding tax types and codes that you have defined as non-eligible in the Customizing.
Example
You have the following document:
D/C |
Account |
Amount |
Tax type |
Tax code |
D |
Expenses |
€ 100 |
|
|
D |
Sales tax |
€ 16 |
|
ST1 |
C |
Withholding tax |
€ 5 |
WTT1 |
WT1 |
C |
Vendor |
€ 111 |
|
|
Depending on the tax handling method entered for the Customizing of the certification phases and the tax codes that are included and excluded, you can have different eligible amounts:
● If you have not entered any value in the corresponding tax handling method, the eligible amount is € 100, because, by default, the sales tax is excluded and the withholding tax is included.
● If you have only entered the tax code ST1 as eligible, the eligible amount is € 116.
● If you have only entered the withholding tax type WTT1, the eligible amount is € 111.
● If you have entered both the tax code ST1 and the withholding tax type WTT1, the eligible amount is € 95.